Case Study: AA Lender achieves 60%+ reduction in liabilities defects and industry benchmark alignment with ACES Risk Management Corp (ARMCO)'s ACES Analytics QC Benchmarking Tool

Lender Reduces Critical Defects Using ACES Analytics QC Benchmarking Tool

AA Lender, a top residential mortgage lender in the Southeastern United States, was directed by its executive board to remediate defects uncovered in more than 2,300 post-closing QC reviews after finishing 2014 with a 1.26% net defect rate and targeting 0.78% for 2015. To substantiate remediation efforts and compare performance to peers, AA Lender engaged ACES Risk Management Corp (ARMCO) and its ACES Analytics QC benchmarking tool.

Using ACES Analytics from ACES Risk Management Corp (ARMCO), AA Lender benchmarked its defect categories, discovered its 8.23% liabilities defect rate (vs. ~2% industry average) and traced 89% of those liabilities defects to improper liability calculations. With that insight AA Lender implemented targeted remediation, cutting liabilities defects by more than 60% in one month and down to 1.39% after two months—well below the industry average—while improving overall QC processes and risk visibility.